So, why is the world flat?
We looked at multiple financial instruments, including Bitcoin and many of the exchanges, and ran a simple regression line back from today's price. The flat lines sometimes stretch back 2-3 weeks (meaning the index or commodity or currency has been flat), or sometimes back to January. We are in a flat market!
1. This week we published 10 stocks that should individually outperform the $SPY...if you must hold only 1 stock, for 25 trading days starting May 19, 2021.
We will track & report.
2. We made more progress re-coding some of our solvers. A few highlights:
- we have valid and effective solutions coming from D-Wave Systems Inc., Greedy (steepest gradient descent) solver, D-Wave Systems Neal (simulated annealer) and D-Wave Systems Quantum Annealer (the Advantage). This is great news.
One compromise had to be made. We analyze our 4,600 stocks, validate to 3,600, then solve to find ~100 stocks (last week was 109), then apply all the new solvers, and the quantum solver, to find best (or worst) stock portfolios according to our quantum algorithm (the Chicago Quantum Net Score). We now have ~12 solvers that all pick stock portfolio optimizations, and they solve in different ways. They are independent. We take the best (1 or many) answers and run them through other solvers (like the custom reverse simulated annealer). They are mutually supporting solvers that get us deeper solutions.
Enough progress that I will wear pirate hair, a faded Singapore hat that I did buy while working on the island, and sing the US National Anthem.
3. We re-assessed our business plan & direction. There is so much to do. We are looking for talent in the Chicagoland area. Reach out if you know someone (or you are interested).
3. Markets are flat. Could be a top, a consolidation, or just Summer. Could be inflation concerns (last week's topic), worry that the pandemic is not really over, or too many market swings that eat up liquidity. Nobody I know is thinking the market can only go up from here…Even seeing some heads and shoulders forming…but not confirmed. Prior tops not beat.
4. Our model had a revision that made it more like Value Line, or a standard analysis methodology. We found a way to isolate trading activity that is significantly anomalous. So, we did that and removed those stocks from our analysis.
btw, this week we also removed ~12 closed end funds that do not say they are funds in their stock market company/stock description (NYSE, NYSE American and NASDAQ). We picked $LEO to be part of a best 'long' portfolio. First time a closed end fund (CEF) showed up as really good or really bad.
So, we now have a choice. Clients can have us take out, or leave in and report on volume and price spikes. For those who know what they are...they indicate abnormal interest or pricing of a stock during the measurement period.
5. Feeling much better. No cold, and hit the gym hard this week (weights and cardio).
6. Next week our recording will not be on Friday (may need to skip it).
And now about the markets. We drew a regression line from today's prices backwards to see how long we can draw a flat line. This is the plateau we see in the markets. Plateau...after markets were up between 40% and 65% this past year. This is why some people are saying we are in a bear market (we are not in a bear market).
Good luck out there. Jeffrey Cohen email@example.com (847)780-4401
May 21, 2021
We are quantum computing consultants who work with clients across industries. Our first industry is financial services and our second is media and entertainment.
If you want to learn more about us, email me at firstname.lastname@example.org.
Check out the website at https://www.chicagoquantum.com.
Telephone: 847.780.4401 (Chicagoland) - yes, you can just call if interested to learn more.
BBB A+ rating - and we work hard to honor our commitments and be frugal with our client's money. Originally trained under the American Institute of CPA Guidelines, and we still hold them dear today.
- We are long Summit Midstream Partners LLC (SMLP) common units and American Shared Hospital Services (AMS) common shares. These are highly risky positions and you could lose all of your investment, so please do your due diligence before investing.
This is not investment advice, and we are not investment advisors. Do your own due diligence before investing (long or short). Oh, and it takes time to make money, so be patient with your investments.
Chicago Quantum (SM) is a service mark of US Advanced Computing Infrastructure, Inc., and offers services in the areas of quantum computing and management consulting. For more information and a full disclosure of fees, please visit our website at https://www.chicagoquantum.com.
We do our own research and believe all information to be true and accurate when presented. We are not paid to produce these videos or engage in social media.
We are not investment advisors and this is not investment advice. Please see our website (footer) for a full list of disclosures.
Week 19 - Chicago Quantum wrap-up: Working through some things...
1. Earlier this week we discussed inflation (video and article).
2. We also made progress re-coding some of our solvers. Not enough progress to start doing a Scottish jig wearing a Jimmy hat, but enough to mention.
3. Markets were up and down, decisive each way.
4. Our model is doing very well in the markets. New ways to look at the data are helping. We pick the dogstars that drop when the market falls. We pick allstars that go up when markets go up. It remains to be seen whether our allstars and dogstars outperform when markets bounce up and down quickly.
5. We have had two stories of hackers this week, with very different consequences.
6. Chicago White Sox have the best record in MLB. Let's celebrate!
All week I have been fighting a cold. Forgot what it was like.
May 14, 2021
Strategic IT Management Consultant with a strong interest in Quantum Computing. Consulting for 29 years and this looks as interesting as cloud computing was in 2010.